Illinois DOR Issues Guidance on Retailers’ Occupation Tax for Leases

The Illinois Department of Revenue (DOR) has issued a general information letter stating that, effective Jan. 1, 2025, persons engaged in the business of leasing tangible personal property at retail in Illinois are subject to state and local retailers’ occupation tax on the gross receipts from leases. Leases subject to retailers’ occupation taxes are sourced to either the primary property location for leases requiring recurring periodic payments, where the property is delivered to the lessee, or sourced in the same manner as other retail sales for other lease types. [Il. Dep’t of Revenue, General Information Letter (ST 26-0002-GIL), 01/14/26]

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